Shares of The RealReal (NASDAQ: REAL) soared 24.14% in pre-market trading on Friday, following the luxury consignment company's release of its second-quarter 2025 financial results, which significantly exceeded expectations and included an improved full-year outlook.

The company reported record quarterly Gross Merchandise Value (GMV) of $504 million, up 14% year-over-year. Total revenue for Q2 reached $165 million, also a 14% increase compared to the same period in 2024, beating the analyst consensus of $159.7 million. The RealReal's adjusted earnings per share came in at $(0.06), surpassing the estimated $(0.08).

Rati Levesque, Chief Executive Officer of The RealReal, commented on the results, stating, "The second quarter was a breakout performance for The RealReal, further validating the success of our strategic roadmap as strong execution fueled top-line momentum and margin expansion." The company's gross margin improved to 74.3%, up 20 basis points from the previous year, while Adjusted EBITDA margin expanded significantly to 4.1%, an increase of 530 basis points year-over-year.

Looking ahead, The RealReal raised its full-year 2025 guidance, now expecting total revenue between $667 million and $674 million, up from its previous forecast. For the third quarter, the company projects GMV of $495 - $502 million and total revenue of $167 - $170 million. The improved outlook, coupled with the strong Q2 performance, contributed to the substantial pre-market stock price increase as investors responded positively to the company's growth trajectory and improving profitability.